Nairobi — Cabinet has approved a legislative amendment aimed at addressing the recurring delays in the disbursement of additional funds to county governments -- a problem often caused by discrepancies between figures proposed by the National Assembly and the Senate.
According to a statement from State House, the Public Finance Management (Amendment) Bill, 2025 will soon be tabled in Parliament. The proposed law seeks to split the County Governments Additional Allocations Bill into two separate pieces of legislation to expedite the release of funds to counties.
The County Governments Additional Allocations Bill is a money bill designed to supplement the annual equitable share of revenue. It covers both conditional and unconditional allocations, including funds from sources such as the Road Maintenance Levy Fund and development partners.
The Cabinet meeting, chaired by President William Ruto, noted that the amendment aims to resolve persistent delays in enacting the annual Additional Allocations Act -- delays that have in the past disrupted service delivery and slowed development at the county level.
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"Under the proposed reform, Parliament will consider two separate Bills -- one for allocations from the National Government's share of revenue, and another for allocations financed through loans and grants from development partners," the Cabinet brief stated.
The Cabinet observed that the proposed legislative change is expected to enhance efficiency in public finance management, improve service delivery, and strengthen devolution by ensuring the timely transfer of funds to counties.
Earlier this year, a standoff over billions in delayed disbursements pushed the 47 counties to the brink of a shutdown of essential services. The Council of Governors (CoG) accused the National Treasury of failing to release KSh 63.6 billion in equitable share revenue.
CoG Chairperson and Wajir Governor Ahmed Abdullahi described the delays as a violation of the law and a direct threat to devolution.
The funds are critical for paying salaries, financing development projects, and supporting essential services such as healthcare for millions of Kenyans.
The funding impasse stemed from protracted debates over the Division of Revenue (Amendment) Bill 2024. While the Senate has approved a county allocation of KSh400.1 billion, the National Assembly has insisted on a lower figure, creating a legislative stalemate that has prevented the County Allocation of Revenue Act from being passed and assented to, five months into the 2024/2025 financial year.
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